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Keurig to Post Q2 Earnings: What Is in the Cards for Investors?

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Key Takeaways

  • KDP is expected to post Q2 revenues of $4.14B, up 5.5%, and EPS of $0.49, up 8.9% year over year.
  • Strong CSD sales, brand innovation and GHOST acquisition are driving U.S. Refreshment Beverages' momentum.
  • Coffee unit sales are forecast to drop 10.8% as inflation and weak brewer demand weigh on performance.

Keurig Dr Pepper Inc. (KDP - Free Report) is scheduled to release second-quarter 2025 results on July 24, before the market opens. The company is expected to register top-line growth when it reports the quarterly results. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.14 billion, indicating a 5.5% rise from the year-ago period’s number.

The consensus estimate for KDP’s second-quarter earnings is pegged at 49 cents per share, suggesting 8.9% growth from 45 cents reported in the prior-year quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

In the last reported quarter, the company delivered an earnings surprise of 10.53%. KDP has registered an earnings surprise of 3.1%, on average, in the trailing four quarters.

Keurig Dr Pepper, Inc Price, Consensus and EPS Surprise

Keurig Dr Pepper, Inc Price, Consensus and EPS Surprise

Keurig Dr Pepper, Inc price-consensus-eps-surprise-chart | Keurig Dr Pepper, Inc Quote

What the Zacks Model Unveils for KDP Stock

Our proven model does not conclusively predict an earnings beat for Keurig this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Keurig has a Zacks Rank #3 at present and an Earnings ESP of -0.01%.

Key Factors to Note Ahead of KDP’s Q2 Results

Keurig is well-positioned to deliver a strong second-quarter 2025 performance, building on the momentum of a solid first quarter. Continued brand strength, strategic pricing actions and innovation-led growth are expected to remain key drivers. The company’s expansion initiatives and focus on product innovation are acting as tailwinds, while the Refreshment Beverages segment continues to show robust momentum. Additionally, the recent GHOST energy acquisition is likely to further boost results through enhanced market presence and incremental sales.

In particular, the U.S. Refreshment Beverages segment is expected to remain a growth engine, led by sustained performance in the carbonated soft drinks (CSD) category. Brands like Dr Pepper, Canada Dry and 7UP are gaining share, supported by impactful innovations such as Dr Pepper Blackberry and 7UP Tropical. Emerging brands, including Electrolit and Bloom Sparkling Energy, are also gaining traction and are likely to have contributed meaningfully to second-quarter top-line growth. The GHOST acquisition has already delivered a solid start and is expected to accelerate results as integration continues.

KDP’s consumer-centric innovation strategy, backed by detailed scorecards measuring awareness, household penetration and loyalty, is expected to have supported continued market share gains in the quarter. The Zacks Consensus Estimate for Refreshment Beverages unit sales is pegged at $804 million, representing a year-over-year increase of 12.8%.

On the international front, KDP anticipates improved growth in the second quarter, driven by late first-quarter price realization tied to inflation and the activation of stronger commercial strategies across key markets. In Mexico and Canada, momentum remains strong with brands like Penafiel, Crush and Dr Pepper, all of which benefit from strong local resonance. Continued pricing optimization and disciplined cost management are expected to have supported both top-line growth and margin expansion across international operations.

However, the company continues to face inflationary pressures, particularly in its Coffee segment, which has remained sluggish for some time. The segment continues to grapple with elevated green coffee costs, reduced brewer shipments and cautious consumer spending. While KDP implemented early price increases to mitigate inflation, the uneven timing of industry-wide pricing created short-term volume and mix challenges. The Zacks Consensus Estimate for sales in the Coffee unit is $264 million, reflecting a year-over-year decline of 10.8%.

Valuation Picture

From a valuation perspective, Keurig stock is trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 16.03x, which is well below the five-year high of 23.33x and the Beverages - Soft Drinks industry’s average of 17.96x, the stock offers compelling value for investors seeking exposure to the sector.

Zacks Investment Research
Image Source: Zacks Investment Research

The recent market movements show that KDP’s shares have risen 7.2% in the past six months compared with the industry's growth of 5.9%.

Zacks Investment Research
Image Source: Zacks Investment Research

Stocks With the Favorable Combination

Here are some companies that, according to our model, have the right combination of elements to beat on earnings this reporting cycle.

Anheuser-Busch InBev SA/NV (BUD - Free Report) , aka AB InBev, currently has an Earnings ESP of +7.06% and a Zacks Rank of 3. The company is likely to register a decline in the top line when it reports second-quarter 2025 numbers. The consensus mark for revenues is pegged at $15.33 million, indicating a decline of 0.01% from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for AB InBev’s quarterly earnings per share is 89 cents, implying a 1.1% decrease from the year-ago quarter. The consensus mark for earnings has fallen by 2 cents in the past 30 days. BUD has a trailing four-quarter earnings surprise of 10.9%, on average.

Primo Brands Corporation (PRMB - Free Report) currently has an Earnings ESP of +1.38% and a Zacks Rank of 3. PRMB is anticipated to register growth in its top and bottom lines when it reports second-quarter 2025 results. The Zacks Consensus Estimate for Primo Brands’ quarterly revenues is pegged at $1.8 billion, indicating a surge of 275.5% from the figure reported in the prior-year quarter.

The consensus estimate for Primo Brands’ bottom line has moved down by 2 cents in the past 30 days to 43 cents per share. This implies growth of 65.4% from the year-ago quarter’s figure. PRMB has delivered an earnings beat of 3.5%, on average, in the trailing four quarters.

Altria Group, Inc. (MO - Free Report) currently has an Earnings ESP of +1.03% and a Zacks Rank of 3. MO is anticipated to register top-line decline and bottom-line growth when it reports second-quarter 2025 results. The Zacks Consensus Estimate for Altria Group revenues is pegged at $5.2 billion, indicating a decline of 1.7% from the figure reported in the year-ago quarter.

The consensus estimate for Altria’s earnings has increased a penny in the past seven days to $1.37 per share. The consensus estimate implies a decline of 4.6% from the year-ago quarter’s figure. MO has delivered an earnings beat of 1.3%, on average, in the trailing four quarters.

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